In simpler terms, the crypto and decentralized finance world often faces controversies, and the newest potential issue is ZKasino, a gambling platform that promises anonymity and big stakes. However, there are serious concerns about this project based on the accusations that have surfaced. These allegations paint a worrying picture, implying that ZKasino might be a carefully constructed facade that could collapse at any moment.
ZKasino Accused Of Diverting Funds And Deceiving Investors
In March, ZKasino faced significant issues when ZigZag, a competing decentralized exchange, made severe allegations. According to ZigZag, ZKasino deceived the public about its financial backing and misused development funds for personal gain instead. The criticisms don’t stop there.
ZKasino allegedly failed to pay contractors who helped build the platform, further eroding trust.
I’m gonna lay this out since it gets worse and worse everyday.
Over the past week, several individuals have come forward claiming that they are owed money by the @ZKasino_io team or have been deceitfully treated by them.
Multiple former employees and contractors have contacted me to let me…
— ZigZag Exchange (@ZigZagExchange) March 23, 2024
Users of ZKasino raised concerns when it seemed that a commitment had been breached regarding the straightforward conversion of Ethereum for withdrawal (a procedure enabling Ethereum’s usage across various blockchains). At first, ZKasino assured its users that they could withdraw their Ethereum at a 1:1 ratio.
Upon the platform’s debut, users found themselves unable to access their funds, which were tied up in ZKasino’s token ($ZKAS), for a 15-month duration. This unexpected development sparked suspicions that ZKasino was involved in a “rug pull” – a regrettable crypto scheme where creators depart with users’ funds post-launch.
Crypto Investors Scramble To Distance Themselves From ZKasino
Some early backers of ZKasino found the burden of these accusations to be overwhelming. MEXC, a significant cryptocurrency exchange that invested $350 million in ZKasino during its funding round, decided to disassociate from the project.
In a recent announcement, MEXC expressed that they had no knowledge of any planned exit scam (rug pull) by ZKasino and were unfortunate victims of the suspected deceit.
An investor named Big Brain Holdings shared MEXC’s concerns about ZKasino. Although Big Brain Holdings didn’t put money into ZKasino itself, they did invest in ZigZag in 2022. They’ve discovered that some former ZigZag team members are now working for ZKasino – a situation that raises warnings for them. Consequently, Big Brain Holdings declined the token distribution offered by ZKasino and urged other investors to do the same.
Speculations Of A Rug Pull
The allegations against ZKasino present a worrying scenario. ZigZag’s declarations, combined with broken pledges and reversed commitments from investors, cast doubts on the authenticity of the project. Although ZKasino has not yet addressed these accusations, their lack of response adds to the suspicion that an exit scam may be underway.
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2024-04-22 15:11